Insurance companies are being urged to face the risks associated with climate change. The world’s oldest insurance market says recent natural disasters have shown the need for new pricing and underwriting models for insurers. The GLRC’s Erin Toner reports:
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Insurance companies are being urged to face the risks associated with climate change.
The world’s oldest insurance market says recent natural disasters have shown the need
for new pricing and underwriting models for insurers. The GLRC’s Erin Toner reports.
Lloyd’s of London’s new report says the costs of climate change could put insurers out of
business if they don’t make some changes. The report says insurance companies have
been slow to manage the financial risks of emerging threats, such as rising sea levels and
the build-up of greenhouse gases. Rolf Tolle is with Lloyd’s of London.
“You will have maybe certain changes in coverage which is available. You will see
changes in pricing. And you may have for certain, very exposed risks, a situation
that insurance is flatly no longer available.”
Tolle says insurers should take climate change predictions into account when setting
rates, rather than simply relying on historical weather patterns. Last year was the costliest
year ever for the insurance industry – mainly because of hurricanes that hit the U.S.
For the GLRC, I’m Erin Toner.